Optional Self-Study CPE courses included with Quickfinder CPE Collection. Obtaining CPE credit requires payment of grading fee.

Small Business: Schedule C and F Expenses

Course Description: This course examines the various expenses that can be deducted on Schedules C and F. You will become acquainted with the costs that must be capitalized as well as those costs that can be deducted immediately. The course also takes a look at depreciation and Section 179 expenses that can be deducted by sole proprietors and farmers. There is also a discussion on the various employee-related expenses such as wages, payroll taxes, and other employee benefits. In addition, the course covers travel and entertainment expenses and the related reporting requirements. Finally, the course will briefly touch upon retirement plans.

Publication/Revision Date: October 2008

Recommended for: Users of Small Business Quickfinder® Handbook

Prerequisite/Advance Preparation: None

CPE Credit: 8 QAS Hours, 8 Registry Hours 8 CTEC Federal Hours, 0 CTEC California Hours Check with the state board of accountancy in the state in which you are licensed to determine if they participate in the QAS program and allow QAS CPE credit hours. Alternately you may visit the NASBA website at www.nasba.org for a listing of states that accept QAS hours. For those states that do not accept QAS hours, Registry hours should be reported. Enrolled Agents: The CPE in this book is designed to enhance professional knowledge for Enrolled Agents. Gear Up is a qualified CPE sponsor for Enrolled Agents as required by Circular 230 Section 10.6(g)(2)(ii).

Field of Study: Taxes

Expiration Date: Postmarked by December 31, 2009

Knowledge Level: Basic

Learning Objectives:

Lesson 1 - Overview Completion of this lesson will enable you to: Differentiate hobby versus business expenses and apply the tests for deductibility. Identify the cash basis or accrual basis taxpayer and capitalized costs compared to deductible expenses. Lesson 2 - Personal and Business Expenses Completion of this lesson will enable you to: Identify and classify home office expenses. Compute automobile expenses using one of the IRS approved methods. Lesson 3 - Depreciation Completion of this lesson will enable you to: Calculate depreciation using the Section 179 expense election and depreciation conventions under MACRS. Lesson 4 - Employee Expenses Completion of this lesson will enable you to: Compute and properly deduct various employee-related expenses. Lesson 5 - Travel and Entertainment Completion of this lesson will enable you to: Differentiate between business expenses that are allowable and those that may be disallowed. Lesson 6 - : Common Expenses Completion of this lesson will enable you to: Determine the deductibility of various expenses common to most small business. Lesson 7 - Farming Revenue and Expenses Completion of this lesson will enable you to: Identify the revenue and expense categories unique to a farming operation, including whether or not the farm meets the definition of a business or hobby. Lesson 8 - Retirement Plans Completion of this lesson will enable you to: Determine the best retirement plan to fit your client?s needs. Describe the deduction limits and qualification rules unique to each type of retirement plan.

To Complete This Learning Process: Send your completed Examination for CPE Credit Answer Sheet, Course Evaluation and payment to: Thomson Reuters DSBT08 Self-study CPE P.O. Box 966 Fort Worth, TX 76101 See the test instructions included with the course materials for more information.

Administrative Policies: For information regarding refunds and complaint resolutions, call (800) 323-8724 for Customer Service and your questions and concerns will be promptly addressed.